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Insurance Tips for First Time Homeowners in South Africa

So, you have just bought your first home (congratulations!) and you have heard that you need to get insured as soon as possible. However, you find yourself wondering where to begin.

In this article, we talk about insurance for your home, and we give you six valuable tips on what you should consider, the questions you should ask, as well as how to make the most of your insurance policies.

insuring your home in south africa

Homeowners Insurance in South Africa – What You Need to Know

Insuring your home is the most important thing you can do as a homeowner. This will protect you against major financial loss in the event of something happening to your home. We must first understand that anything is possible, and nobody is immune to natural disasters, crime, or other unforeseen events and, therefore, home insurance should be non-negotiable.

Know Your Policy Through and Through

The thing about insurance policies is that they are usually tailored to your specific needs. They are also tailored to the value of the item you are insuring which, in this case, is your home.

Therefore, understanding your policy is the first step to making sure you are adequately insured. Our financial advisors in Johannesburg are set up to help you navigate around the different types of policies available to you and what exactly they cover.

Any homeowner’s worst nightmare is believing that they are properly insured, only to realize when it’s too late, that they are not covered for what they are trying to claim for.

Building Insurance and Home Content Insurance – There is a Difference

Home insurance can be broken down into two main categories, namely building insurance and home content insurance. Here is the difference between the two:

  • Building Insurance – this insurance covers the exterior of your home. In other words, it covers the actual structure of the home against severe weather and accidents. Building insurance covers windows, walls, doors, the roof, garages, and outlying buildings
  • Home Content Insurance – simply put, this insurance covers the interior of your home. This includes all your valuable items such as electronics, furniture, appliances, clothing, and jewellery to name a few
Evaluate Your Home on a Regular Basis

As with everything in life, the value of your property and its contents may fluctuate over time. For this reason, it’s important that you have your home evaluated at least once a year to make sure you are still paying the right premiums for your policy. Yes, your premium may increase but being under insured means that you will not be able to claim back to the full value of your property should something bad happen to it.

This will also apply to instances where you have made changes, renovations, or additions to your home. These activities usually increase the value of your home, and if you don’t update your insurance policy accordingly, you will be underinsured.

Know Your Limitations and Exclusions

Every home insurance policy will have exclusions. However, it’s important to know what they are so that you can take out additional cover to ensure your assets are properly insured.

Home Security is Important

Insurance companies usually make risk-based assessments on your home when evaluating it for insurance purposes. They reward homes with security measures as they consider these homes less susceptible to crime. Homes that are less likely to be broken into, are homes that are less likely to claim for damages caused by theft and other crime. Consider electric fencing, security cameras, alarm systems, and employing a private security company.

Keep Records

Although it may feel like unnecessary admin, it’s important to keep record of all your assets, including quotations, invoices, contracts, receipts, and inventories. This will make claiming back for loss or damage much easier.

Olemera – Financial Advisors in Johannesburg

Personal financial planning is a multifaceted activity with the sole purpose of protecting you from unnecessary financial loss. Your home is likely the most valuable item that you own and insuring it properly means that you will not have to use your life savings to cover loss or damage caused by circumstances out of your control.

Contact us to speak to one of our experienced financial planners and let’s get your new home insured.

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